LEARN THE ART OF NEGOTIATION

Introduction:

In this Article lets learn the Art of Negotiation,Various process involved in Negotiation and finally the Closing technique.

What is Negotiation?

A Negotiation is a strategic discussion that resolves an issue in a way that both parties find acceptable. In a negotiation, each party tries to persuade the other to agree with his or her point of view. By Negotiating, all involved parties try to avoid arguing but agree to reach some form of compromise.

Negotiations involve some give and take, which means one party will always come out on top of the negotiation. The other, though, must concede – even if that concession is nominal.
Parties involved in negotiations can vary. They can include talks between buyers and sellers, an employer, and also prospective employee, or governments of two or more countries.

“Information is a Negotiator’s greatest weapon”
“In life, you don’t get what you deserve.
You get what you Negotiate.”

Types of Negotiation:

Integrative

Multiple Issues
Bridge building

Distributive

Confidential
Extract information

THREE PHASES OF NEGOTIATION

Exchanging information
Bargaining
Closing

Skills for successful Negotiating:

Firstly Effective speaking is needed
Effective listening
Self confidence
Patience
Above all Respect

Getting prepared:

Needs preparation:

What you hope to get out it?
What you will settle for?
Which you consider it is unacceptable?

Establishing your WATNA & BATNA

WATNA – Worst Alternative To a Negotiated Agreement – Worst Scenario

BATNA – Best Alternative To a Negotiated Agreement – Satisfactory

Identifying your WAP (Walk Away Price)

Keep secret
Remain firm
Obtain concessions if WAP changes
Finally be prepared to walk away

Identifying your ZOPA (Zone Of Possible Agreement)

Realistic price
Final price will sit here
Keep WAP secret

Personal preparation:

Be Polite
Be Firm
Calmness
Above all do not take things personally

Laying the ground work:-

Setting the time & place:

Can be an advantage
Environmental factors
Limit distractions
Neutral venues

Establishing common grounds:

Effective to find first
Build on it
Builds momentum

Creating a Negotiation framework:

Agree on what is being negotiated
What is Non-negotiable?
Based on values and also goals

THE NEGOTIATION PROCESS:

Preparation – Opening Position – Bargaining – Movement – Closing

PHASE 1 – EXCHANGING INFORMATION:

Decide what to reveal and what to hold back

Getting Off on the right foot:

Firstly Open with small talk
Show a human side
Introductions are important
What to share?
Can be tricky
Start with general issues
Finally set the scene for in-depth negotiations.

PHASE 2 – BARGAINING:

Here buyer and seller of a goods or services dispute the price and also the exact nature of the transaction with the goal of coming to an agreement.

What to expect?
Do they typically start out with an unreasonable offer?
Do they try to rush the negotiations? – Remain firm
Do they try to frame the issues to their own advantage?

Techniques to try:

Prepare, Prepare, Prepare
Leave behind your ego
Ramp up your listening skills
Anticipate compromise
If you don’t ask you don’t get
Stick with principle
How to break an impasse?
If the impasse involves money, change the forms, a larger deposit, a shorter pay period.
Change the team member or the leader
Agree on the easy issues & save the more difficult issues for later.

Mutual Gain:

3 Ways to see your opinion

1) Positional bargaining –Soft

Friends
Agreement

2) Positional bargaining –Hard

Victory
Destruct

3) Interest bargaining:

Mutual gain
Problem solves

About mutual gain:

Focus on interest
Atmosphere of respect
Multiple options

PHASE 3: CLOSING (FINAL PHASE)

A little hard work in this phase can ensure that the negotiation achieves its desired result.

Reaching Consensus:

Live with decision
Different meaning to different people
Cannot please everyone
50% of something is better than 100% of nothing

Building an agreement:

Translate generalities into specifics
Bargaining it over
Interpretation of the consensus
Get the small print in place

Settling the terms of the agreement:

Clearly stated in writing
Backed up with the “how” factor
Firm details

Dealing with difficulties:

Being prepared for environmental tasks:
Behind a desk
Request for an improvement
Be polite, but be firm

Dealing with personal attacks:

Respectful opening
Sets a positive tone
Lets get back to the issues
Take the high road
Suspend the negotiation

Controlling your emotion:

Emotional Intelligence
Discussion will become less focused
Suggest a short break
Clear the atmosphere

Deciding when it’s time to walk away:

Walk away if

You feel threatened or extremely uncomfortable
The other party uses unfair tactics that make it impossible to have a negotiation.

Negotiating Outside the boardroom:

Adapting the process for smaller negotiation:
Separate the people from the problem
Focus on interests, not postions
Expand the range of options
Above all state the forms of an agreement in specific clear terms

By Telephone:

Firstly pay attention to particular points
Listen actively
Requesting more time
Don’t feel rushed

Negotiating Via Email:

Appropriate to use when:
When the topic is clearly defined
When the topic does not require extensive discussion
If expected response is relatively simple
When there is little possibility of misunderstanding.

Negotiation on behalf of someone else:

Have clear idea of WAP

Choosing negotiating team:

Remind everyone of the team’s goals.
Ensure that everyone understands his or her role in the negotiation.
Create a “game plan” for the negotiation.

Dealing with tough questions:

Suggest in friendly way the question is irrelevant
Say you don’t know the answer
You would like to wait to respond
Finally reply with a question of your own

Words from the Wise:

“Let us never negotiate out of fear, but let us never fear to negotiate.”
“Each success only buys an admission ticket to more difficult problem”
“Under-promise; Over-deliver”

Conclusion:

Thus by following the above tips and techniques we can master the art of Negotiation which will be useful in our professional and personal lives.

LIKE WHAT YOU’RE READING?
CHECK OUT SOME OF OUR OTHER GREAT CONTENT HERE

Post Views: 2,810